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Organogenesis buys assets of a living skin substitute from Shire

Photo taken from the website of Organogenesis.
Photo taken from the website of Organogenesis.Credit:

Shire PLC, an Irish drug company that had 1,400 employees at its Lexington research campus as of June, said Friday that it has sold the assets of a living skin substitute called Dermagraft to Organogenesis Inc., a Canton-based company specializing in regenerative medicine.

Dermagraft is used to treat full-thickness diabetic foot ulcers and is approved for use in the US and Canada.

In a press release, Shire said it has been prioritizing investments that are of the greatest strategic, clinical, and commercial value to the company and that Dermagraft no longer meets those criteria.

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In the release, Shire said it will receive no upfront payment from Organogenesis but is entitled to receive up to $300 million cash in total milestone payments should Organogenesis meet certain annual net sales targets between now and 2018. Shire will record a loss on disposal and associated impairment charges of about $650 million in the fourth quarter of 2013, which will be excluded from Non GAAP earnings.

A press release from Organogenesis included a statement from president and chief executive Geoff MacKay.

“Organogenesis is a pioneering company in the regenerative medicine and wound healing fields, and we are now the proud owners of two products containing living cells that are FDA-approved for wound healing,” he said. “In the midst of a CMS coverage decision which limits access to FDA-proven technology, this deal was necessary to keep both assets on the market and available for patient treatment.”

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